The Public-Private Partnership (PPP) Center of the Philippines, together with the Department of Transportation (DOTr) and International Finance Corporation (IFC), signed contracts for consultancy services for two (2) transportation projects on November 22, 2023, at the IFC Office in Taguig City.
These projects, which include the Unsolicited Proposals (USPs) for Regional Airports and the Rehabilitation, Expansion, Operations, and Maintenance (REOM) of the LRT 2 Project, were approved to receive funding support through the Project Development and Monitoring Facility (PDMF) on October 27, 2023.
The USPs for Regional Airports Project involve the upgrade, expansion, and operations and maintenance (O&M) of the Bohol-Panglao, Laguindingan, and Bicol International Airports, integrating the concepts of ‘Green’ and ‘Connected’ airports into its design and using digital technologies to enhance passenger experience and improve system efficiency.
Meanwhile, the REOM of the LRT 2 Project involves the rehabilitation, O&M, and potential expansion of the existing LRT 2 system.
As the Consultant for the projects, the IFC will provide project preparation and transaction advisory support, including due diligence of the legal, technical, and financial aspects of the projects, detailed structuring, marketing to potential investors, and assistance in the bidding process and Swiss challenge, among others.
The engagement of IFC follows the October 2023 amended PDMF Guidelines, which introduced the use of the PDMF to engage the services of International Financing Institutions.
“With the recent expansion of the PDMF scope, we are looking forward to more opportunities to work with IFC in our continued efforts towards sustainable and climate-resilient infrastructure development in the country,” PPP Center Executive Director Ma. Cynthia C. Hernandez said.
“A modernized transport sector, bolstered by green and sustainable technologies, can play a pivotal role in connecting people to better services and opportunities and help the Philippines develop a low-carbon economy,” said Jean-Marc Arbogast, country manager for the Philippines at IFC.
“We’re honored to be partnering with the PPP Center and the DOTr in developing these vital infrastructure projects,” he added.
“I have repeatedly highlighted the added premium of projects with private sector participation. This is clearly demonstrated in the world-class Clark International Airport, the Mactan-Cebu International Airport, LRT Line 1 and the upcoming New Manila International Airport in Bulacan,” said DOTr Secretary Jamie J. Bautista.
“Many more investment-grade transport projects are being offered for development by local and foreign private investors. This collaboration with the private sector will enable us to extract the maximum public benefits from our transport projects,” the DOTr official added.
The contracts were signed by PPP Center Executive Director Hernandez DOTr Secretary Bautista, and IFC Regional Manager Thomas Lubeck, with DOTr and IFC officials as witnesses.
